NEW ZEALAND MEAT. ALLEGED COMBINES.

Evening Post, Volume LXXV, Issue 14, 17 January 1908, Page 4

NEW ZEALAND MEAT. ALLEGED COMBINES.

THEPRBMIER ON THE SITUATION. CUT TELEGBAPIt.— -FEESS ASSOCIATION.] CHRISTCHURCH, 16th January. "I have no official information from the High Commissioner in regard to the dealings of tho American Meat Trust with cur frozen mutton, and lamb at Home," Sir Joseph Ward stated to areporter this morning. "Neither has the matter been brought directly under my notice as head! of tho Government. Further than that, I do not know anything more than tho man in the street in reference- to the proposed combination of New Zealand meat export companies suggested by representatives of North Island freezing organisations. If you were to ask my personal opinion as to the advisablcness of such a step I should certainly say that on broad principles competition at this end is essential in the general interests of our sheepfarmers. If we had one centralised organisation, as the result of intense combination, there would be a danger (which in practice might not arise, but which, on tho face of it ia still apparent), that a groat combination of interests at one end would entail the creation of such a 'powerfully-controlling factor that it would be hard, to predict what it might lead to- in the course of a few yeaxs. . "While I hold this view, I am 1 also of opinion' that numerously scattered freezing -works overlapping each other to a-\ considerable extent do more harm than good in fictitiously raising prices to tan grower, and thus paving the way to an inevitable reaction. But that is quite v. different matter Iron? en amalgamation of interests on the producing side. Three "or 1 " four powerful freezing, organisations operating independently at this end seam to bo mqre suited to the general interests of the Dominion. Afe the other end there is no doubt if combination for selling purposes could be secured, by one or two powerful organisations acting in the capacity of sellers, but not of buyers, ifc would assist matters very materially The more sellers there' aro the more drjs- , tic becomes tho competition, and as ,too Jlcenu,entlyi time iß"ess?ntial in disposing of large shipmeiits of frozen' merit, haste tjfan be achieved 'only by the. various sellers cutting pjricea to make I 'Gales. yßuby ßub 1 know* enough of 'its quality to affirm , 4hat New Zealand^ niutton will hold; Us owu -in spitq* o,f any ordinary • drtexftadrdinaxV competition. '.Thfe, quality of flur/lamb an* 1 mutton is so, good, and- f suth^cars, is - exercised 'in> 'selecting what is' sent out of .tyie- country, that so long a&, these desirable con'dicions are maintained wo hare ,nothing,.to fear from ; outside' competition. What' iB suggo&ted of the American Beef Trust — that it undersells onr^inutton. and Jamb in order to secure orders for beef— possibly is practised'at Homa, bat so long as our-mutton and 'aiub 'are. not purchased by members of the 'trust at' loss than its~ standard Value, then the thing is not an unmired evil^frorn. our point of view. We cannot certainly blame they sellers for taking advantage of high prices if they ara avail- j able. The whole thing is a very big j question, and as the industry is one of I our best and most profitable, all interests ■would best te eerved.by maintaining fair j competition/* At the sanje ,-i<iua.e- it might be productive. pf much gopdoifriJiosQ connected with the export trade were to confer, with a- View- to pushing the trade. It ! is doubtful whether a combination on the lines suggested from the "North Island j could! secure many advantages in' regard 1 to shipping if the present freights arc fair and not excessive. It stands to reason that if ail the ehosp-farmers combined with the object of bringing freights belbw a paying poiiifc, that could only bs done by the shipping companies becoming interested in the meat, in 1 order to lecoup tha Jbss on freights. So far as direct steamers from Isew Zealand aro concerned, foi somo time past no country in the wciul lia& enjoyed gioater advantages."